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“I buy on the assumption that they could close the market the next day and not reopen it for five years.”

— Warren Buffett

The Warren Buffett investment philosophy calls for a long-term investment horizon, where a five year holding period, or even longer, would fit right into the strategy. How would such a strategy have worked out for an investment into Advanced Micro Devices Inc (NASD: AMD)? Today, we examine the outcome of a five year investment into the stock back in 2018.

Start date: 01/30/2018


End date: 01/27/2023
Start price/share: $12.87
End price/share: $75.40
Starting shares: 777.00
Ending shares: 777.00
Dividends reinvested/share: $0.00
Total return: 485.86%
Average annual return: 42.47%
Starting investment: $10,000.00
Ending investment: $58,583.43

The above analysis shows the five year investment result worked out exceptionally well, with an annualized rate of return of 42.47%. This would have turned a $10K investment made 5 years ago into $58,583.43 today (as of 01/27/2023). On a total return basis, that’s a result of 485.86% (something to think about: how might AMD shares perform over the next 5 years?). [These numbers were computed with the Dividend Channel DRIP Returns Calculator.]

One more investment quote to leave you with:
“Never is there a better time to buy a stock than when a basically sound company, for whatever reason, temporarily falls out of favor with the investment community.” — Geraldine Weiss